Comptroller of the Currency Approves Volcker Rule Reforms

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WASHINGTON, DC—Comptroller of the Currency Joseph Otting today signed a final rule amending the "Volcker Rule" to tailor and simplify the rule while maintaining protections core to the safety and soundness of the federal banking system.

Comptroller Otting made the following statement upon approving the final rule:

After extensive comment and feedback through the rulemaking process, I am pleased to approve changes to the "Volcker Rule" that simplify the rule in a common sense way that preserves the safety and soundness of the federal banking system and eliminates unintended negative consequences of the prior rule.

Following the financial crisis, banks took important steps to recapitalize their balance sheets, restore liquidity, and improve their risk management in responsible ways. National banks and federal savings associations exited the behaviors and practices that some saw as threats to the insured deposits. The limits and protections put in place by the prior version of the "Volcker Rule" remain to ensure inappropriate risk practices do not recur. At the same time, we have made substantial progress eliminating ineffective complexity and addressing aspects of the rule that restrict responsible banking activity based on our experience with the rule.

I look forward to other agencies joining the OCC in approving the final rule and to voting for the final rule during the Federal Deposit Insurance Corporation board meeting later today. I want to thank the many staff members from all of the agencies for the hard work and collaborative effort to produce the changes to the rule that will maintain the important protections that contribute strength to our nation’s banks.

The rule implements Section 13 of the Bank Holding Company Act of 1956 (BHC Act). The BHC Act assigns authority for implementing the prohibitions and restrictions of section 13 to the Office of the Comptroller of the Currency, U.S. Commodity Futures Trading Commission, the FDIC, the Federal Reserve Board, and the Securities and Exchange Commission. The final rule will be published in the Federal Register following consideration and approval of all of the participating agencies.